Surface relief gratings on eosin dye soaked gelatin films are created on exposure to polarized cw diode pumped Nd:YAG laser beam at 532 nm without any subsequent processing steps and the progression of the grating inscription is monitored by measuring the growth of the intensity of first order diffracted beam over time with 633 nm beam of a He-Ne laser. Diffraction efficiency of the grating is found to depend on time of exposure, intensities and intensity ratio of the interfering beams, and concentration of the dye in gelatin. A diffraction efficiency up to 30% is observed. The recording is predominantly surface relief. The surface modulations of the grating generated are investigated using an atomic force microscope.